Correlation Between Cashlez Worldwide and Tourindo Guide

Can any of the company-specific risk be diversified away by investing in both Cashlez Worldwide and Tourindo Guide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cashlez Worldwide and Tourindo Guide into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cashlez Worldwide Indonesia and Tourindo Guide Indonesia, you can compare the effects of market volatilities on Cashlez Worldwide and Tourindo Guide and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cashlez Worldwide with a short position of Tourindo Guide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cashlez Worldwide and Tourindo Guide.

Diversification Opportunities for Cashlez Worldwide and Tourindo Guide

-0.54

Correlation Coefficient

Cashlez Worldwide  Tourindo Guide

Excellent diversification

The 3 months correlation between Cashlez and Tourindo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cashlez Worldwide Indonesia and Tourindo Guide Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourindo Guide Indonesia and Cashlez Worldwide is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cashlez Worldwide Indonesia are associated (or correlated) with Tourindo Guide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourindo Guide Indonesia has no effect on the direction of Cashlez Worldwide i.e., Cashlez Worldwide and Tourindo Guide go up and down completely randomly.

Pair Corralation between Cashlez Worldwide and Tourindo Guide

Assuming the 90 days trading horizon Cashlez Worldwide Indonesia is expected to under-perform the Tourindo Guide. But the stock apears to be less risky and, when comparing its historical volatility, Cashlez Worldwide Indonesia is 1.01 times less risky than Tourindo Guide. The stock trades about -0.07 of its potential returns per unit of risk. The Tourindo Guide Indonesia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  9,600  in Tourindo Guide Indonesia on December 24, 2024 and sell it today you would earn a total of  1,800  from holding Tourindo Guide Indonesia or generate 18.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cashlez Worldwide Indonesia  vs.  Tourindo Guide Indonesia

Cashlez Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cashlez Worldwide Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Tourindo Guide Indonesia

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tourindo Guide Indonesia are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Tourindo Guide disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cashlez Worldwide and Tourindo Guide

The main advantage of trading using opposite Cashlez Worldwide and Tourindo Guide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cashlez Worldwide position performs unexpectedly, Tourindo Guide can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tourindo Guide will offset losses from the drop in Tourindo Guide's long position.

The idea behind Cashlez Worldwide Indonesia and Tourindo Guide Indonesia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.